Playing On The New Strategy Chessboard_AT Kearney_2010

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Playing On The New Strategy Chessboard_AT Kearney_2010

  1. 1. Playing on theNew StrategyChessboardHiring a consulting firm often meansaccess to the hottest and most innovativestrategies in the marketplace. Improvinga company’s performance, however, meansusing approaches targeted to the company’ssituation rather than applying the strategytheory du jour. The Strategy Chessboardgives structure to the different schools ofthought on strategy, by providing a toolboxof approaches. A.T. Kearney | EXECUTIVE AGENDA 5
  2. 2. SINCE THE 1970s, we’ve witnessed a bewilder- to articulate clear choices in strategic approaches ing array of strategic schools of thought and and pick the right starting point for developing frameworks. The 1980s were dominated by and applying a particular strategy. Michael Porter’s positioning for competitive This approach is critical for dealing with advantage. The 1990s had multiple contribu- two assumptions that are often flawed but tors, with Prahalad and Hamel’s Competing for accepted: (1) that an industry is predictable and the Future standing out. Kim and Mauborgne’s (2) that a company’s strategic focus is always Blue Ocean Strategy and Deans, Kröger and concerned with adapting its positioning within Zeisel’s Winning the Merger Endgame were this presumably predictable industry. noteworthy contributions in the early 2000s. Throughout these decades, the Santa Fe Institute has painted the economy as an Evolving Complex Predictability’s Role in System, which has significant strategic implica- Adapting, Reshaping tions as the institute suggests that managers Should your management team’s goal be to often assume certainty where there is none. adapt the company’s positioning within the Dozens of schools of thought claim to have industry or to play a major role in reshaping the most widely applicable and useful framework the industry (which may include creating new for strategy development, yet most strategists sub-industries)? Taking the time at the onset of are biased toward the theories and frameworks a strategy development to assess how predict- with which they are most comfortable. At able the industry is likely to be will help answer A.T. Kearney, we believe that a single strategy this question about which frameworks to use. school is not universally applicable; strategies The Santa Fe Institute challenges the and their frameworks are complementary. Based assumption that industries are predictable. The on our research and work in this area, we’ve institute suggests that the world is more diffi- developed a Strategy Chessboard that enables us cult to predict than most managers assume. FIGURE 1 Two common “mis-assumptions” impede strategists Two common assumptions… …are often proven wrong • Real estate and finance: bubbles burst in 2008 • Utilities: renewable energy and regulatory uncertainties confound investments In Industries are 1 • Pharma: blockbuster drugs stall predictable p • Auto: demand shock follows the financial crisis • Telecom: adoption rates soar for smartphones and related apps • Southwest and Ryanair create low-cost carrier segment C Companies always • IKEA convinces customers to assemble furniture 2 adapt their position a • Microsoft/Wintel are kings of de-facto standardization within an industry w • GE becomes aggressive acquirer targeting top-two position • Google with Android affects all handset makers Source: A.T. Kearney analysis6 PLAYING ON THE NEW STRATEGY CHESSBOARD
  3. 3. Figure 1 highlights some events that have had right — have dramatically changed marketenormous impact and arguably were difficult or structures. Network equipment manufacturerin some cases impossible to predict: the growth Cisco has an explicit strategy of investingof mobile and Internet services; the rapid recov- in markets at transition points in their life cycleery of emerging market demand in 2009; and so that it can shape the industry with its enor-the impact of CDOs (collateralized debt obli- mous financial and technical resources.gations) and other new financial instruments. Consolidating an industry, enforcing betterThese and similar events underscore the chal- conduct by customers and competitors, decon-lenge of predicting the future development of structing value chains, and redesigning businessan industry at certain points in time. During models — these are all ways to shape an indus-the past 25 years, globalization, increasingly try to your long-term advantage. A companyrapid technology cycles, and consumer fads that wishes to shape an industry must first havehave meant that unpredictability and volatility the right DNA — desire, need and ability — tohave only increased. mold the overall development of the industry. The trick is to assess early in the strategy Industry shaping and restructuring doesn’tdevelopment process whether your industry normally occur automatically or accidentally.will go through an evolutionary or revolutionary It’s driven by visionary CEOs with strong lead-change in the coming years. In revolutionary ership, exceptional timing, consensus-drivenenvironments, some companies choose to chal- approaches, targeted business models and anlenge assumptions about the industry and shape “evolvable” value chain. Incumbents, often con-it to their own advantage rather than adapt tent with their own success, may not be suffi-to the competitive environment. The actions of ciently motivated to create the “next-generation”one company in shaping the competitive envi- industry structure. Smaller players, with lessronment might have an impact on other players; to lose, will often be far more likely to experi-for example, all partners in an ecosystem. ment and can emerge as surprisingly potent Even if your firm is content to adapt to the competitors.competitive environment, and is not attempt-ing to reshape the industry, competitors couldbe making reshaping attempts that will have Two Dimensions, Fourconsequences for your organization. Netflix, Approachesfor example, changed Blockbuster’s dominance Using these two dimensions — predictabilityin the movie-rental industry almost overnight. and a company’s ability to shape or adapt to itsApple, similarly, reshaped the relationship industry — we can map four distinct strategicbetween phone application developers, con- approaches (see figure 2 on page 8):tent owners, operators and customers, leaving Position and conquer. Strategic analysis isa trail of destruction in its wake for less-adept used to determine which optimal position in thecompetitors. industry a company should pursue and how to Industry-shaping leadership is even more outmaneuver competition in order to grow at aimportant in highly dynamic and uncertain faster-than-market rate. This is a classic approachenvironments. First movers, such as Apple — to strategy development. The most influentialwhich was first to get all the pieces of the contributor in this area has been Michael Portertwenty-first century digital-music business with his book Competitive Strategy, which focuses A.T. Kearney | EXECUTIVE AGENDA 7
  4. 4. on positioning for competitive advantage (price, Oracle’s pattern of acquisitions demonstrates premium and niche strategies). Military strategy a company that acts as a powerful industry archi- analogies are often used for approaching the tect. Through extensive research, Deans, Kröger competitive challenge; Sun Tzu, for example, and Zeisel have shown natural consolidation has inspired many authors. Adrian Slywotzky patterns in industries. Reconfiguring value has authored several books on profits and chains, such as suggested by Aurik, Jonk and has outlined how to identify “profit patterns” Willen in their book, Rebuilding the Corporate (pockets of profitability) and capture those in Genome, also affects how the industry works. a competitive environment. Redefining an industry is also possible through Redefine the industry. Through analysis convergence and deconstruction of the value (and simulations) we deduce the optimal ways chain as Bloomberg has done in the business to shape the industry to benefit both the com- news industry. Finally, through game theory, it pany and the industry. Using this approach, the is possible to mold the conduct of an industry company becomes an industry architect, moving into something more beneficial for its members. the overall industry structure, boundaries, con- Reinvent the industry. If predictability is duct, and performance in a favorable direction low, a useful goal for many companies is to rein- while capturing a strong role in this redefined vent the industry to gain advantage, reduce or industry future. Pursuing an ambitious M&A off-load risk, or create new capabilities and agenda clearly shapes the industry structure. resources. Uncertainty makes prediction diffi- FIGURE 2 Two dimensions, four strategic approaches Company’s desire, need and ability (DNA) to: Redefine Reinvent Use analysis and simulations to Conceptualize an attractive Shape the determine how the industry can industry development, map the industry be shaped to benefit both route to make it happen, and craft the industry and the company. a role for the company to play. Maintain foresight Position and conquer and flexibility Use analysis to determine the Institutionalize a strategic Adapt “within” company’s optimal position process focused on pursuing the industry in the industry and develop a portfolio of strategic initiatives a plan to pursue that position. that accelerates learning and provides flexibility with limited investment. High analytical Low analytical Industry predictability Source: A.T. Kearney analysis predictability predictability for a relevant time horizon8 PLAYING ON THE NEW STRATEGY CHESSBOARD
  5. 5. cult, but it also opens up significant opportuni- means of preparing for uncertain industryties for visionary industry leaders to guide others futures (or risky potential futures). Evaluatingin a favorable direction. Companies in the strategies as “real options” for business models,Reinvent quadrant have powerful imaginations; capacity and markets adds a financial perspec-they’re able to develop both an attractive future tive to dealing with uncertainty. This method isindustry vision and a shaping agenda to increase frequently used for long-term, big-investmentthe likelihood of the industry moving toward situations (for example, for utilities or large-this vision. In their book Competing for the capacity manufacturing plants). Lastly, severalFuture, Prahalad and Hamel envision and argue important strategy contributions have beenfor new value propositions, new technologies made to the evolutionary field, such as Ericand new capabilities — and we believe their Beinhocker’s book The Origin of Wealth.thinking is in line with how to find a preferredfuture, mobilize, and get there first. We often usescenarios as a basis for crafting an attractive pre- The Strategy Chessboardferred industry future for our clients. Execution In creating and organizing our Strategythen focuses on ways to increase the likelihood Chessboard, we selected what we consider tothe industry will develop in that direction. be the most useful and complementary schoolsThe Blue Ocean Strategy, written by Kim and of thought based on our work with clientsMauborgne, outlines approaches for developing (see figure 3 on page 10). When deciding duringnew and more innovative value propositions. a strategy-development exercise which strategyIn his book Big Think Strategy, Bernd Schmitt schools should be applied, nothing is black-and-introduces new ways to create strategies that will white. A clear choice does tend to emerge, how-transform an industry. In his books Crossing the ever, based on a company’s strategic intent andChasm, Inside the Tornado and Dealing with the predictability of its industry. Remember thatDarwin, Geoffrey Moore outlines strategies to schools of thought aren’t completely mutuallyget the mass market to embrace innovative prod- exclusive; those selected should provide a com-ucts being used by leading-edge adopters. plementary and valuable strategic perspective. Maintain foresight and flexibility. For com- Creators of individual schools of thoughtpanies unwilling or unable to reshape the indus- and strategic theories may argue that the appli-try, the key is to institutionalize a strategic process cability of their ideas is broader than what’s pre-that accelerates learning across the company, sented in the Strategy Chessboard. While suchwhile pursuing a portfolio of strategic initiatives claims have merit, the chessboard summarizesthat provides strategic flexibility with limited how different schools of thought have proveninvestment. A company may encourage “strate- useful in a wide sample of strategic projects,gic experimentations” in order to prepare for how they complement each other, and whichdifferent futures. Several schools of thought strategies may prove most useful depending onabout “dynamic strategy” stress the importance the company’s situation. The chessboard pro-of frequent and flexible strategic planning, such vides a multi-dimensional perspective on strat-as in Fast Strategy by Doz and Kosonen. Our egy development and addresses an importantclients frequently request scenario develop- but rarely discussed element: the selection ofment—well-known because of the pioneering a strategic framework or frameworks to be usedwork of Royal Dutch Shell — as an effective for a particular effort. A.T. Kearney | EXECUTIVE AGENDA 9
  6. 6. Strategy development begins with identify- where the concentration ratio for the top three ing where on the two axes your company is companies is below 20 percent, for example — located. Industry predictability is determined by we often find companies launching aggressive analysis of industry drivers, including demand, M&A strategies in an effort to consolidate the offerings, competition, suppliers and your com- industry and thus strengthen their own roles. pany’s actions. Strategic intent is determined If you suspect this, you would be wise to inves- by an assessment of a company’s desires, needs tigate your industry-shaping options. In indus- (both positive and negative), and ability to tries with lackluster performance, competitors shape the industry. Once a starting point and are surely conjuring ways to reinvent the indus- an initial framework are determined, it doesn’t try. Rather than be left behind, you’ll want to mean all other schools of thought are ignored. lead from the front. If you’ve survived one Applying several different approaches can often consolidation race, you can surmise that com- help generate strategic alternatives. petitors are thinking up ways to unsettle the It’s worthwhile to keep in mind some typi- industry via a major reinvention strategy. You cal industry evolution patterns to help deter- can hedge your bets by moving first to identify mine in which quadrant you want to “play.” reinvention opportunities and shaping these In stable industries with low consolidation— to your advantage. If the future of your industry FIGURE 3 The A.T. Kearney Strategy Chessboard Company’s desire, Portfolio strategy (Ansoff matrix, GE matrix, various consultants) need and ability (DNA) to: Converge or Create Pursue global Create and slice industry “Blue Ocean” industry endgame pursue opportunities consolidation (Pennings and “preferred future” Puranam; Stieglitz; (Kim and Mauborgne; Lind; Christensen; Christensen; (Hamel, Prahalad, (Kröger) Rosenberg) Schumpeter; von Hippel) Kratzert) Shape the industry Change Reconfigure Cross the industry conduct industry “chasm” with Think big value chains (von Neumann, innovative and lateral Morgenstern; products (Porter; Jonk; Ghemawat; Chussil; (Schmitt; de Bono) J. Moore; Christensen) Oriesek and Schwarz; (Moore; Arthur) Pfeffer, Salancik) Grow in core, Pursue dynamic Prepare for Position to build adjacent business, strategies multiple competitive and step out scenarios advantage (Doz et al.; (Andrew; Wernerfelt; Carpenter et al.; (Kahn; de Geus, (Porter; Kröger) Zook; Viguerie et al.; Lindblom; Quinn; Wack; Wilkinson) Deans, Kröger et al.) Markides) Adapt “within” the industry Deploy battle Deploy real Implement an Identify and evolutionary adapt to strategies options-based strategies strategic process profit patterns (Sun Tzu; Clausewitz; Welch; McNeilly, (Myers; Schwarz; (Arthur et al; (Slywotzky) El-Kadi) Beinhocker; Luehrman) Holland; Gell-Mann) High analytical Low analytical Industry predictability Source: A.T. Kearney analysis predictability predictability for a relevant time horizon10 PLAYING ON THE NEW STRATEGY CHESSBOARD
  7. 7. is uncertain, then a few major players will likely with a framework that may limit the com-step up to lead in a preferred (for them) direc- pany to certain solutionstion. The question for you: Are you content 2. Sequence “bias” problem: a project beginswith following and adapting to their direction, with industry analysis and is then followed byor do you want to be among those leading your company analysis and options developmentindustry forward? 3. Different approaches problem: a different Figure 4 offers several examples of different process is used to develop strategy at each levelcompanies’ strategies and how they might Strategic lens problem. Strategy develop-appear on the Strategy Chessboard, based on ment efforts can unintentionally be influencedour knowledge of the different strategic situa- by which “lens” we choose to use to analyzetions and goals of each company. a strategy problem. A particular strategic frame- work will often predispose teams toward certain solutions. If a Porterian model suggests you canAvoiding Strategic Flaws be a low-cost producer or a premium brand,Our Strategy Chessboard is helpful in avoiding you may find it difficult to consider morethree common flaws: visionary strategies that would allow you to1. “Strategic lens” problem: a project starts deliver a superior product and lower cost.FIGURE 4Different strategic situations land in different quadrants on the chessboardCompany’s desire, Strategize the portfolio (Ansoff, GE, various consultants)need and ability Lockheed(DNA) to: ISS: rollup, nverge or Co Con Converge on Create Create e Pursue global e globacreation of e industry ob l ba b Ryanair: Cr Martin: Cre e Create Create and slice industry ce industry n nd y “Blue Ocean” Google: Joint Strike “Blue O nOcean” low-cost industry endgame stry endg st y end facilities industry endgame pursue pursues opport pp tunities pportunities opportunities within con lidation consolidation manage- on i i consolidation (P ninMTG: (Pennings d (Pennings and in ngs travel “preferreFighter “preferred future” preferred future ed e GE: #2 in Puranam; Stieglitz; ; monopoly (Kim and Mauborg mobile Kim m Mauborgne; uborgne; mentLind; Christensen; Lind; Christensen; nd; C ri Christ sen; devices Ch sten hri ten te tensen; Christensen; Malaysia: (Hamel, Prahalad, Prahalad, each (Kröger) (Kröger) ö R Rose breaking Rosenberg) Rosenberg) Kratzert) city Cyber tz t Kratzert) Schumpeter; von Hippel) Schumpeter;r Hipp Hip el ipp ppel) Shape the industry FedEx: industry Change nge ge overnight Reconfigure Reconfigure ni ue Cro Cross th Cross the ro mail in u industry industry conduct Wal-Mart: try indust y u industry “chaYouTube: delivery nk big “chasm” with ch m c sm” Think Apple: k big massive hains IKEA: (von Neumann,, massive innovative v innovative lateral a and lateral for value c chains ( on eumann, (vo e (von Neumann, iTunes discounting packaging Morgen rgenstern; Morgenstern; progrowth pr ducts products legal music (Porter; Joninnovationemawat; Chussil; (Porter; Jonk; r; r Ghemawa m Ghemawat; ; (Schm (S mitt; (Schmitt; de Bono) mitt J. Moore; Christensen) J Moore; Christens oore; Christensen) e Oriesek and Schwar Oriesek d Schwarz; esek ek warz arz; (M e; A th ) (Moore; Arthur) (Moore; Arthur) Moo ; download Pfef Salancik) Pfe fer, Salanc k) eff Pfeffer, nci nc k) cik ci Toyota: new G Gr Grow core Grow in core, re, drivetrain sue dynamic Pursue dy Pursue dynamic dyn Pre Shell: Prepare for repare Position to build adjacent business, build adjacent business, ui i adjacen sines jace e ine strate ZARA: str egies trate e strategies energy multiple t multiple competitive e v ve competitive and step out nd st step ut t move with future scenarios arios a scenarios advantage Carrefour: advantage d n g nt (Doz fads (Doz et al; Doz Do D retail w; Wernerfelt; (Andrew Wernerfelt; (Andrew; Wernerfelt; w; r Carpenter et al; pent nt t ter Carpenter (Kahn; de Geus, de Geus Geus, us, s, (Porter; Kröger) Kröger) ger er) er ; Viguerie Viguer V gue uer Zook; Viguerie et al; L Lind om Q Li blom; Quinn; m Lindblom; Quinn; Wilk nson) Wi kinso kin Wack; Wilkinson) Deans, KrögSkanska: n , Kr er rö rög Deans, Kröger et al) Markides) k des) Markides) Bertelsmann: Adapt “within” construction new media the industry DHL: Deploy battle y battle battle Deploy Deploy real o Implemen Implement an lement m Identify Identify and d logistics f evolutio ary o u ion uti evolutionary ada ad pt da adapt to strategies e ie e strategies options-based s options-based strategies egies e strategies Microsoft:c process strategic p gic process profit patterns fit att s fit patterns tterns profit patterns (Sun Tzu; Clausewitz; Clausewitz; multiple McNeilly, Welch; McNeilly, (Myers; Schwarz; operating u Schwarz; z; ; (Arthur et al; (Arthur et al; (Slywotzky) (Slywotzky) wo w k ) El-Kadi) K El-Kadi) Beinhocker; hock o Beinhocker; Luehrman) r Luehrman) systems Gellll-Mann) Holland; Gel - d; Gell-Mann) e High analytical Low analytical Industry predictabilitySource: A.T. Kearney analysis predictability predictability for a relevant time horizon A.T. Kearney | EXECUTIVE AGENDA 11
  8. 8. Selecting an entry lens (or strategy school needed are very similar but act on different and framework) is a critical step in the strategy- levels of granularity: corporate strategy deals development process. Applying additional and with a collection of business units; business- complementary lenses enriches our industry unit strategy deals with a collection of product understanding and increases our options by areas; and product-area strategy deals with helping us compare and validate the analysis. a collection of products. Sequencing bias problem. Conducting An effective strategic process is explicit and a comprehensive industry analysis before you easily understood. Our recommended approach generate your company’s potential strategic is outlined in figure 5. The first step identifies, options downplays your company’s integral role on a high level, the company’s strategic intent in the industry. Considering industry analysis and assesses the likely industry predictability. while you devise strategic options, however, This step will help you select the appropriate has many advantages, as a company’s strategic entry lens for the more detailed analysis you initiatives can often have a material impact will conduct to determine options. The strategy on the development of the future industry— school is identified this way for prime “inspira- generating reactions from major competitors tion,” but is then customized according to the and stakeholders. company’s unique challenges and objectives. Different approaches problem. It makes It makes little sense to perform an industry little sense to have different approaches to analysis without considering the various strategic developing corporate, business unit and even options. Devising an ambitious M&A strategy product strategies. The issues and concepts to consolidate the industry without considering FIGURE 5 Three-step approach to strategy development Perform industry analysis, Evaluate strategic options Define strategic intent, generate options, and against company DNA, industry context and develop an “enriched” finalize strategy and appropriate “entry lens” industry perspective establish governance A. Perform C. Perform A. Perform entry-lens analysis, A. Evaluate strategic options against company competitor synthesis; create options company DNA analysis analysis Adapt or Consider • Identify rivals’ shape B. Finalize strategy recommendations • Desire strategic • Need positioning • Ability (in chessboard) C. Establish governance model • Develop view Predictability of the future Includes: and ambitions • Implementation plans B. Develop “enriched” industry • Resources B. Perform D. Conclude perspective and options portfolio • Monitoring, feedback and control industry appropriate • Steering responsibilities analysis “entry lens” Adapt or shape Consider Adapt or • Environment shape • Demand • Offering Predictability • Competition • Suppliers Predictability • Actions (your own) Source: A.T. Kearney analysis12 PLAYING ON THE NEW STRATEGY CHESSBOARD
  9. 9. other players’ likely responses is not very useful. in predictable industries, a comprehensive gov-In most cases, additional lenses enrich your ernance plan will help steer, monitor and adjustunderstanding of the industry and increase the the implementation as necessary.number of potential strategic options. Just as skilled craftsmen control their tools The final step is always validation, where and know when and how to apply them, thewe match and test strategic options against the Strategy Chessboard gives structure to the tool-company’s DNA. No strategy will ever be box of available strategy schools of thought.implemented that the leadership team and Strategy teams can design and implement changeprimary owners don’t feel a need to pursue or projects that are aligned with the company’sdon’t have the capabilities to implement. Even position, uncertainties and aspirations.Consulting AuthorsThomas Kratzert is a partner in the European strategy and communications and high-tech practices.Based in the Stockholm office, he can be reached at thomas.kratzert@atkearney.com.Michael Broquist is a principal in the communications and high-tech practice. Based in theStockholm office, he can be reached at michael.broquist@atkearney.com.BibliographyArthur, W. Brian. Increasing Returns and Path Dependence in the Economy (Economics, Cognition, and Society). University of Michigan Press, 1994.Arthur, W. Brian, Steven N. Durlauf, and David A. Lane. The Economy as an Evolving Complex System II (Santa Fe Institute Series). Addison-Wesley, 1997.Aurik, Johan C, Gillis J. Jonk, and Robert E. Willen. Rebuilding the Corporate Genome: Unlocking the Real Value of Your Business. Wiley, 2002.Beinhocker, Eric D. The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Harvard Business School Press, 2006.Brandenburger, Adam M. and Barry J. Nalebuff. Co-Opetition: A Revolution Mindset That Combines Competition and Cooperation: The Game Theory Strategy That’s Changing the Game of Business. Crown Business, 1997.Carpenter, Mason A. and William Gerard Sanders. Strategic Management: A Dynamic Perspective, Concepts and Cases. Prentice Hall, 2006.Christensen, Clayton M. The Innovator’s Dilemma: The Revolutionary Book that Will Change the Way You Do Business. Harper Paperbacks, 2003.Christensen, Clayton M., Scott D. Anthony and Erik A. Roth. Seeing What’s Next: Using Theories of Innovation to Predict Industry Change. Harvard Business Press, 2004.Christensen, Clayton M. and Michael E. Raynor. The Innovator’s Solution: Creating and Sustaining Successful Growth. Harvard Business Press, 2003.Copeland, Tom, and Vladimir Antikarov. Real Options, Revised Edition: A Practitioner’s Guide. Texere, 2003.Deans, Graeme K. and Fritz Kröger. Stretch!: How Great Companies Grow in Good Times and Bad. Wiley, 2003.De Bono, Edward. Serious Creativity: Using the Power of Lateral Thinking to Create New Ideas. HarperBusiness, 1993Dixit, Avinash K. and Barry J. Nalebuff. The Art of Strategy: A Game Theorist’s Guide to Success in Business and Life. W.W. Norton and Company, 2008.Doz, Yves and Mikko Kosonen. Fast Strategy: How Strategic Agility Will Help You Stay Ahead of the Game. Wharton School Publishing, 2008.Hacklin, Fredrik. Management of Convergence in Innovation: Strategies and Capabilities for Value Creation Beyond Blurring Industry Boundaries (Contributions to Management Science). Physica-Verlag HD, 2007.Hamel, Gary. Leading the Revolution: How to Thrive in Turbulent Times by Making Innovation a Way of Life. Harvard Business School Press, 2000.Hamel, Gary and C.K. Prahalad. Competing for the Future. Harvard Business School Press, 1996.Holland, John H. Hidden Order: How Adaptation Builds Complexity. Basic Books, 1996.Kim, W. Chan and Renée Mauborgne. Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Harvard Business Press, 2005.———. Value Innovation: The Strategic Logic of High Growth. Harvard Business Review, 1997.Kröger, Fritz, Michael Moriarty and Andrej Vizjak. Beating the Global Consolidation Endgame: Nine Strategies for Winning in Niches. McGraw-Hill, 2008.Lind, J. “Convergence: History of Term Usage and Lessons for Firm Strategists.” In ITS 15th Biennial Conference, Berlin International Telecommunications Society, 2005.Luehrman, Timothy A. “Investment Opportunities as Real Options: Getting Started on the Numbers.” Harvard Business Review, 2009.———. “Strategy as a Portfolio of Real Options.” Harvard Business Review, 2009.Markides, Constantinos C. and Paul A. Geroski. Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets. Jossey-Bass, 2004.McNeilly, Mark R. Sun Tzu and the Art of Business: Six Strategic Principles for Managers. Oxford University Press, 2000.Moore, Geoffrey A. Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets (Collins Business Essentials). Harper Paperbacks, 2004.Moore, Geoffrey A. Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. HarperBusiness, 1999.Moore, J.F. The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems. Harper Collins, 1997.Pfeffer, Jeffrey and Gerald Salancik. The External Control of Organizations: A Resource Dependence Perspective. Stanford Business Books, 2003.Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, 1998.———. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, 1998.Schmitt, Bernd H. Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking Behind. Harvard Business School Press, 2007.Schumpeter, Joseph A. The Theory of Economic Development. Transaction Publishers, 1982.Slywotzky, Adrian J., Bob Andelman and David J. Morrison. The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow’s Profits. Crown Business, 2002.Slywotzky, Adrian J., Ted Moser, Kevin A. Mundt, James A. Quella. Profit Patterns: 30 Ways to Anticipate and Profit from Strategic Forces Reshaping Your Business. Crown Business, 1999.Stieglitz, Nils. “Digital Dynamics and Types of Industry Convergence: The Evolution of the Handheld Computers Market.” In Christensen, Jens Frøslev, and Peter Maskell, The Industrial Dynamics of the New Digital Economy. Edward Elgar Publishing, 2003.Tzu, Sun. The Art of War. Translated by Samuel B. Griffith. Oxford University Press, 1971.Viguerie, Patrick, Mehrdad Baghai and Sven Smit. The Granularity of Growth: How to Identify the Sources of Growth and Drive Enduring Company Performance. Wiley, 2008.Von Clausewitz, Carl. On War. Translated by J.J. Graham. Penguin Classics, 1982.Von Neumann, John, and Oskar Morgenstern. Theory of Games and Economic Behavior. Princeton University Press, 1980.Wilkinson, Lawrence. “How to Build Scenarios.” In Wired Magazine “The Future of the Future” Special Edition, 1995.Zook, Chris. Beyond the Core: Expand Your Market Without Abandoning Your Roots. Harvard Business Press, 2004.Zook, Chris, and James Allen. Profit From the Core: Growth Strategy in an Era of Turbulence. Harvard Business Press, 2001. A.T. Kearney | EXECUTIVE AGENDA 13
  10. 10. executive agenda ideas and insights for business leadersExecutive Agenda® is published by A.T. Kearney to offer fresh perspectivesand encourage discussion on subjects of interest to senior executives andopinion leaders worldwide.A.T. Kearney is a global management consulting firm that uses strategic For information on obtaininginsight, tailored solutions and a collaborative working style to help clients additional copies, permissionachieve sustainable results. Since 1926, we have been trusted advisors on to reprint or translate articles,CEO-agenda issues to the world’s leading corporations across all major and all other correspondence,industries. A.T. Kearney’s offices are located in major business centers please contact:in 37 countries. A.T. Kearney, Inc.AMERICAS Atlanta | Boston | Chicago | Dallas | Detroit | Mexico City 222 West Adams Street New York | San Francisco | São Paulo | Toronto | Washington, D.C. Chicago, Illinois 60606 U.S.A.EUROPE Amsterdam | Berlin | Brussels | Bucharest | Copenhagen 1 312 648 0111 Düsseldorf | Frankfurt | Helsinki | Kiev | Lisbon | Ljubljana | London email: insight@atkearney.com Madrid | Milan | Moscow | Munich | Oslo | Paris | Prague | Rome www.atkearney.com Stockholm | Stuttgart | Vienna | Warsaw | Zurich Bangkok | Beijing | Hong Kong | Jakarta | Kuala LumpurASIA PACIFIC Melbourne | Mumbai | New Delhi | Seoul | Shanghai | Singapore Sydney | TokyoMIDDLE EAST Abu Dhabi | Dubai | Johannesburg | Manama | Riyadh& AFRICAPUBLISHING ADVISER EDITOR DESIGNWayne Boley Patricia Sibo Kevin PeschkeCopyright 2010, A.T. Kearney, Inc. All rights reserved. No part of this work may be reproduced in any form withoutwritten permission from the copyright holder. A.T. Kearney® and Executive Agenda® are registered marksof A.T. Kearney, Inc. A.T. Kearney, Inc. is an equal opportunity employer.A.T. Kearney Korea LLC is a separate and independent legal entity operating under the A.T. Kearney name in Korea.

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